XRP bulls faced a dramatic 3,750% liquidation spike, with long positions dominating the market imbalance. Despite hopes for a breakout, the token experienced a sharp price rejection, leading to further losses for investors.

XRP Bulls Hit by 3,750% Liquidation Imbalance

There has been a significant disparity in the number of liquidations between long and short XRP positions on the perpetual futures market on the last day.

During this time, more than $780,000 worth of XRP derivatives were liquidated, according to data from CoinGlass. The disparity in these liquidations stands out, though. Bets for an increase in the price of XRP, making up a massive 97.43% or $760,800, came from long positions.

Investors Hoped for a Major Breakout

As far as anyone can tell, the buyers, or bulls, who were hoping to profit from an XRP price jump, are to blame for the short positions' collapse. A price surge of almost 1.5 percent yesterday, to a significant level around $0.54 per XRP, gave investors hope for a breakout in the token's value.

However, market sentiment was different. Per U.Today, XRP did not see a breakout but rather a severe rejection, resulting in a 1.6% decline within thirty minutes. In the hours that followed, the situation deteriorated further as a new wave of selling pressure drove the token price down by 1.83 percent.

Consequently, XRP had a total fall of 3.37%, with the bulls taking the worst damage due to 37.5 times more liquidations than the shorts during this unstable period.

XRP May Test $0.50 Support Level Soon

The future of XRP is uncertain, but it appears that it may find stability near the $0.50 level. There is a dynamic price support line that has been in place since June 2022 and this price zone is significant since it coincides to it.

The price of XRP rose by more than 52% in only nine days during its spectacular summer run, but it appears that the token may soon retest this crucial support level.